Buffybot ,'Dirty Girls'
Off-topic discussion. Wanna talk about corsets, duct tape, or physics? This is the place. Detailed discussion of any current-season TV must be whitefonted.
it may take a while to get your 401K high enough to make it worthwhile borrowing from it.
It may also take a while for housing here to be remotely affordable, so that's not a big issue for me in West LA.
I need to check our rules.
This is my plan, anyway.
Are you saving post tax, or pre?
Maybe Carrot Top?
::resists the smart-assed remark, but almost kills self doing so::
::resists the smart-assed remark, but almost kills self doing so::
What, is he already a zombie?
What, is he already a zombie?
No, I was just resisting (and this counts, because I haven't used her name and his in the same post) wondering if we had someone who'd been closely linked to the Top right here.
Are you saving post tax, or pre?
Post. I would be wary about what happens to a loan againt your 401k if you leave your job.
Also, I can read, and I am so going to kill you. I am not linked to any fucking celebrities!
DX has described this process to me -- borrowing from your own 401K. And because you're paying yourself back with interest, you're only benefitting yourself.
Yup. I did this to borrow the down payment for my house, and when that was paid off, I took out a new loan to pay off the cradit card bills I ran up once I bought the money pit, since I was already acclimateded to having the payments deducted from my paycheck. Far better to be paying the interest to yourself than to a bank.
The rules on our 401K don't specify what the loan has to be for.
I would be wary about what happens to a loan againt your 401k if you leave your job.
I hate money. I really do.
I can read, and I am so going to kill you. I am not linked to any fucking celebrities!
Pshaw. You're just projecting. I'm totally not talking about you.
I would be wary about what happens to a loan againt your 401k if you leave your job.
That is a concern. The loan period is typically five years (unless it's for a house, when it can go longer). If you leave the plan before then, the loan comes due immediately. I assume that if you can't pay it off, it becomes an early withdrawal, so there will be penalties and taxes. My job is stable, and I pretty much plan to stay here til I retire, so it's not a problem for me.
The loan period is typically five years (unless it's for a house, when it can go longer).
Well, so much for that. My job is stable, but it's just not normal to be around that long, given I have no idea when the bubble would burst (like 4 years from now, or whatever).
I'll just put away some pre-tax, but not with house in mind. I can borrow against it anyway, to supplement, I guess.
Just think -- if I had more money, I could get a financial advisor to do this instead.
I would be wary about what happens to a loan againt your 401k if you leave your job.
That is a concern. The loan period is typically five years (unless it's for a house, when it can go longer). If you leave the plan before then, the loan comes due immediately. I assume that if you can't pay it off, it becomes an early withdrawal, so there will be penalties and taxes. My job is stable, and I pretty much plan to stay here til I retire, so it's not a problem for me.
For a mortgage, you can generally take a disbursement, rather than a loan, without penalty. So leaving a job doesn't factor in. On a loan, you're right, whatever's outstanding needs to be paid back (I believe within the tax year) or it becomes the bad kind of disbursement, where you do get hit with a 30% penalty.
I'll just put away some pre-tax, but not with house in mind. I can borrow against it anyway, to supplement, I guess.
Most companies will match a small amount of your contributions to 401k plans, such as the first 4%. So at the very least, you should be putting in that much, 'cause it's automatically doubled. If you're not contributing enough to get the match, you're basically turning down free money.